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Ford (F) to Reduce F-150 Lightning EV Production in Michigan
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Ford (F - Free Report) will cut one of the two production shifts at its Rouge Electric Vehicle Center in Michigan that builds the all-electric F-150 Lightning. The company intends to match customer demand by lowering production. The announcement came amid slower-than-expected customer demand for electric vehicles (“EVs”).
The U.S. legacy automaker has been manufacturing the F-150 Lightning since April 2022. In 2023, the company sold 24,000 F-150 Lightning units. This represented a small fraction of Ford's overall F-series pickup sales, which exceeded 750,000 units.
Sales of F-150 Lightning increased 55% year over year in 2023. While the company expects further growth in the model’s sales this year, reportedly, it is not likely to reach the 150,000-production rate targeted during the plant's upgrade last year.
Although the F-150 Lightning is eligible for $7,500 in federal EV tax credits, the price of the vehicle is still higher than the $34,000 base price of the gas-powered truck. Ford has changed the price of Lightning several times since 2022.
The decrease in production of the F-150 Lightning will impact 1,400 workers. Half of these workers will be transferred to the Michigan Assembly Plant, where Ford will increase the production of gasoline-powered Ford Bronco and Ranger models. Other workers will be shifted to nearby plants or are expected to avail of the “Special Retirement Incentive Program” as per the 2023 Ford-United Auto Workers agreement.
Last year, Bronco and Ranger sales went down 9.7% and 43.3%, respectively. The factory that manufactures both vehicles was affected by a six-week United Automobile Workers strike. The company will add a third shift to its Michigan Assembly Plant this summer to increase the production of Bronco and Ranger. It will add 900 jobs to this plant.
The Zacks Consensus Estimate for VLVLY’s 2023 sales and earnings suggests year-over-year growth of 4.2% and 73.1%, respectively. The EPS estimates for 2023 and 2024 have improved by 4 cents and 3 cents, respectively, in the past 30 days.
The Zacks Consensus Estimate for BRDCY’s 2023 earnings implies year-over-year growth of 5.3%. The EPS estimate for 2024 has moved up by 8 cents in the past 60 days.
The Zacks Consensus Estimate for HMC’s 2024 sales and earnings suggests year-over-year growth of 14.8% and 35%, respectively. The EPS estimate for 2024 has improved by 9 cents in the past 30 days. The EPS estimate for 2025 has improved by 7 cents in the past seven days.
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Ford (F) to Reduce F-150 Lightning EV Production in Michigan
Ford (F - Free Report) will cut one of the two production shifts at its Rouge Electric Vehicle Center in Michigan that builds the all-electric F-150 Lightning. The company intends to match customer demand by lowering production. The announcement came amid slower-than-expected customer demand for electric vehicles (“EVs”).
The U.S. legacy automaker has been manufacturing the F-150 Lightning since April 2022. In 2023, the company sold 24,000 F-150 Lightning units. This represented a small fraction of Ford's overall F-series pickup sales, which exceeded 750,000 units.
Sales of F-150 Lightning increased 55% year over year in 2023. While the company expects further growth in the model’s sales this year, reportedly, it is not likely to reach the 150,000-production rate targeted during the plant's upgrade last year.
Although the F-150 Lightning is eligible for $7,500 in federal EV tax credits, the price of the vehicle is still higher than the $34,000 base price of the gas-powered truck. Ford has changed the price of Lightning several times since 2022.
The decrease in production of the F-150 Lightning will impact 1,400 workers. Half of these workers will be transferred to the Michigan Assembly Plant, where Ford will increase the production of gasoline-powered Ford Bronco and Ranger models. Other workers will be shifted to nearby plants or are expected to avail of the “Special Retirement Incentive Program” as per the 2023 Ford-United Auto Workers agreement.
Last year, Bronco and Ranger sales went down 9.7% and 43.3%, respectively. The factory that manufactures both vehicles was affected by a six-week United Automobile Workers strike. The company will add a third shift to its Michigan Assembly Plant this summer to increase the production of Bronco and Ranger. It will add 900 jobs to this plant.
Zacks Rank & Key Picks
F currently carries a Zacks Rank #3 (Hold).
Some better-ranked players in the auto space are Volvo (VLVLY - Free Report) , Bridgestone Corporation (BRDCY - Free Report) and Honda Motor Co., Ltd. (HMC - Free Report) . VLVLY and BRDCY sport a Zacks Rank #1 (Strong Buy), and HMC carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for VLVLY’s 2023 sales and earnings suggests year-over-year growth of 4.2% and 73.1%, respectively. The EPS estimates for 2023 and 2024 have improved by 4 cents and 3 cents, respectively, in the past 30 days.
The Zacks Consensus Estimate for BRDCY’s 2023 earnings implies year-over-year growth of 5.3%. The EPS estimate for 2024 has moved up by 8 cents in the past 60 days.
The Zacks Consensus Estimate for HMC’s 2024 sales and earnings suggests year-over-year growth of 14.8% and 35%, respectively. The EPS estimate for 2024 has improved by 9 cents in the past 30 days. The EPS estimate for 2025 has improved by 7 cents in the past seven days.